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Auditors give Southeast Polk an unmodified opinion, flag material weaknesses in reconciliations and GAAP adjustments
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Summary
Bonsack & Fromelt presented the FY2025 audit: a clean (unmodified) financial statement opinion but two material weaknesses (timely bank reconciliations and adjustments required for GAAP), a prior-year single-audit filing compliance finding for 2024, and recommendations to strengthen payroll and segregation-of-duties controls.
Auditors from Bonsack & Fromelt LLP gave the Southeast Polk Community School District a clean financial statement opinion for the fiscal year ended June 30, 2025, but reported two material weaknesses and other control observations at the April 9 board meeting.
"For the financial statement audit, the audit result is that you have an unmodified opinion," auditor Mia Fromelt told the board. She then described two material weaknesses: untimely bank reconciliations and significant adjustments needed to conform district records to generally accepted accounting principles (GAAP).
Fromelt said, "The June reconciliations for June 2025 were not final until February 2026," and that as a result the material weakness will be repeated for the fiscal year. She explained that some bank accounts were reconciled through December 2025 while others lagged into August 2025 as staff worked to catch up, and that the district has pulled in a third party to assist.
On the single-audit compliance finding, Fromelt said the 2024 single audit was filed late (required by 03/31/2025 and filed in April 2025), generating a material noncompliance finding, but she added the 2025 single audit was filed before the March 31, 2026 deadline and should not receive the same finding next year.
The auditors also provided recommendations for payroll controls, urging more preventive controls at the start of the payroll process and segregation of access to the payroll master file. Board members pressed for monthly updates on reconciliation progress and asked what could be done if the current system does not permit separation of duties; administration described compensating controls such as monthly review and sign-off.
